Evolving with tech trends in the 21st century is a good way to position yourself in the global market and not just earn better remunerations for your hard work, but also stay ahead of your game and continuously stay relevant while setting a pace for your contemporaries.
In recent times, many businesses and even freelancers are adopting new financial technologies to ease the process of transacting across borders, and though this can be complex in some cases, it has proven to be highly instrumental as locals who possess relevant skills and are exposed to the relevant fintech innovations can interact, transact, and seamlessly get paid for their services. This is just one of the benefits.
“Fintech” is a concept derived from blending two individual words: “financial technology.” It refers to the use of technology to improve and automate financial services and processes. Fintech innovations encompass a wide range of technologies, applications, and business models that disrupt traditional banking and financial services. They can be used for various purposes, ranging from e-banking to e-lending and a myriad of other electronic financial transactions. Below are 10 financial technology (Fintech) innovations that we have curated to keep you informed. These innovations are currently prevailing in Nigeria and can be used by everyone who needs them.
1. Mobile money services
Platforms like Paga, OPay, MTN Mobile Money, and Eyowo provide mobile money services that enable users to send and receive money, pay bills, and make purchases using their mobile phones.
2. Peer-to-Peer Lending
Fintech companies such as Carbon (formerly Paylater), Renmoney, Lidya, and FairMoney offer peer-to-peer lending services, allowing individuals and small businesses to access loans quickly and conveniently through mobile apps or online platforms.
3. Digital Banking
Neobanks like Kuda Bank and ALAT by Wema Bank provide full digital banking services without physical branches, enabling customers to open accounts, transfer money, pay bills, and access other banking services entirely through mobile apps.
4. Cryptocurrency Exchanges
Platforms like BuyCoins, Quidax, Bundle Africa, and Luno allow Nigerians to buy, sell, and trade cryptocurrencies such as Bitcoin, Ethereum, and Litecoin, thereby providing opportunities for investment and financial diversification.
5. Remittance Services
Fintech companies such as Flutterwave, Remitta, WorldRemit, and TransferWise offer digital remittance services that enable Nigerians living abroad to send money back home quickly and affordably, bypassing traditional remittance channels. These services also allow for local transactions between institutions and individuals, such as students paying school fees, rather than queuing up at banks or moving about with huge amounts of cash.
6. Agri-Finance Platforms
Platforms like Farmcrowdy, Thrive Agric, and Agropartnerships leverage fintech solutions to provide farmers with access to finance, market linkages, and agricultural inputs, helping to boost agricultural productivity and improve livelihoods in rural areas.
7. Personal finance management apps
Apps like CowryWise, PiggyVest (formerly Piggybank), and Risevest help individuals manage their finances, save money, and invest in various financial instruments, promoting financial literacy and wealth accumulation.
8. Insurance Technology (Insurtech)
Insurtech startups such as Curacel, Surebüddy, and CompareIN offer digital insurance solutions that streamline the insurance process, from policy purchase to claim processing, making insurance more accessible and affordable for Nigerians.
9. Payment Gateways and Processors
Companies like Flutterwave, Paystack (now part of Stripe), Interswitch, and VoguePay provide payment gateway and processing services that enable businesses to accept online payments securely and seamlessly, facilitating e-commerce and digital transactions.
10. Micro-Investment Platforms
Platforms like Trove, Bamboo, and Chaka enable Nigerians to invest in fractional shares of stocks and exchange-traded funds (ETFs) with small amounts of money, democratizing access to the capital markets and wealth-building opportunities.
These fintech innovations are reshaping the financial landscape in Nigeria, driving financial inclusion, promoting economic growth, and empowering individuals and businesses to access and manage their finances more effectively. You can also leverage them for easier domestic and international financial transactions, depending on which of them is most relevant to your immediate need or industry of specialization.
